2021.03.0408:46:00UTC+00UK Construction Sector Recovers In February

The UK construction sector returned to positive territory in February, survey results from IHS Markit and Chartered Institute of Procurement & Supply showed on Thursday.

The construction Purchasing Managers' Index rose more-than-expected to 53.3 from 49.2 in January. A score above 50.0 indicates expansion. The expected level was 51.0.

Residential work remained the strongest area of growth in February, although the speed of recovery slowed slightly. The slowdown in house building was more than offset by the sharpest rise in commercial work since last September and a slower fall in civil engineering activity. The survey showed that new order volumes increased for the ninth straight month in February. Greater workloads encouraged additional staff recruitment. The rate of job creation was the fastest since March 2019.

Average cost burdens increased the most since August 2008. Finally, optimism for the future rose to its highest since October 2015.